Saudi Arabia Nearly Doubles U.S. Corn Imports In 2016/2017

The U.S. Grains Council says Saudi Arabia has nearly doubled purchases of U.S. corn this marketing year due to a combination of favorable government policy shifts, competitive prices and market development work by the Council. So far in the current marketing year, Saudi Arabia has purchased 2.07 million metric tons of U.S. corn, or 81.5 million bushels, up significantly compared to the prior five-year average of 861,000 tons. Changes to local policy have helped spur these shifts. A second policy shift in 2016 began the phase out of domestic wheat production, which had been utilized primarily for feed, to help conserve Saudi Arabia’s water resources. The Grains Council says the market offers demand potential but requires extensive market development work. The Saudi dairy industry is one of the most modern in the world and the country’s large poultry industry processes fresh product for domestic use as well as sales to neighboring Gulf countries. While these industries are quick to adopt new technology and ideas, they are still relatively unfamiliar with U.S. co-products.